Executive summary

On 30 January 2018, New Brunswick Finance Minister Cathy Rogers tabled the province's fiscal 2018-19 budget. The budget contains no new taxes and no tax increases.

The Minister anticipates a deficit of CA$¹189 million for 2018-19, and projects deficits for each of the next two years.

Following is a brief summary of the key tax measures.

Detailed discussion

Business tax measures

Corporate tax rates

No changes are proposed to the corporate tax rates or the $500,000 small-business limit.

New Brunswick's 2018 and 2019 corporate tax rates are summarized in Table A.

Table A: Corporate tax rates

*
The small-business rate is prorated based on a 31 December year end.

**
On 24 October 2017, the Federal Government tabled a notice of ways and means motion to implement reductions in the small-business corporate income tax rate, which were announced on 16 October 2017. The federal small-business rate is reduced from 10.5% to 10.0% effective 1 January 2018 and will be further reduced to 9.0% effective 1 January 2019.

***
The New Brunswick small-business rate was reduced from 3.5% to 3.0 % effective 1 April 2017. On 14 November 2017, the province announced its intention to further reduce the small-business rate to 2.5% effective 1 April 2018. This proposal was enacted 20 December 2017.

Other business tax measures

?The province announced increased support to export-oriented small businesses in order to improve productivity. No details on this initiative were mentioned and they will be provided at a future date.

Personal tax

Personal income tax rates

The budget does not include any changes to personal income tax rates.

The 2018 New Brunswick personal tax rates are summarized in Table B.

Table B: New Brunswick personal tax rates 2018

For taxable income in excess of $154,382, the 2018 combined federal-New Brunswick personal income tax rates are outlined in Table C.

Table C: Combined 2018 federal and New Brunswick personal tax rates

* The rate on capital gains is one-half the ordinary income tax rate.

Personal tax credits

This budget does not include any changes to the personal credits/amounts.

Endnote

¹ Currency references in this Alert are to CA$.

'For additional information with respect to this Alert, please contact the following:

Ernst & Young LLP (Canada), Dieppe

• Dan LeBlanc
  dan.leblanc@ca.ey.com
• Pauline Vautour
  pauline.vautour@ca.ey.com

Ernst & Young LLP (Canada), Saint John

• Armand Iratunga
  armand.iratunga@ca.ey.com

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